[ X ] United States Steel Corp short call vertical spread

2021년 3월 2일

Lazy day, lazy trade.


My Iron Condor Hunter script indicated a potential iron condor for this instrument for the 12 - 23 range.
Let's check for the best setup for this signal.


(1) Basic TA to background check

After a quick TA I judged it too risky, because it limiting the downside potential correction.
The script indicated good ranges in the past 4 years, but now I'm a little bit hesitating about the downside move limit.
The script shows me 12$ as secury bottom target in the next 30 days, but the lowest low may be ~10$, based the green trendline




(2) Murrey Math levels


-1/8 and +1/8 are used for some kind of attempt to catch a trend reversal. -1/8 is an extreme support level during a bearish trend , while +1/8 is an extreme resistance during a bullish tendency.
A test of these lines indicates that the current trend is weakening. As a rule, the price doesn’t revers here and starts corrections towards 0/8 and 8/8. After that, the previous trend resumes.

On the weekly perfectly fit to my Murrey Math Lines Auto +1/8 script.



(3) Daily divergence

Divergence on daily chart , without any more comment..... Indicated local correction.
Breaked down my custom oscillator => correction validated.




CONCLUSION:

Modifying the strategy from the originally planned Iron Condor to Vertical Spread.



Sell 1 X Apr16' 21 call
Buy 1 X Apr16' 23 call

Max profit: ...... $80
Max loss: ......... $120
IVR: ................... 18.3
Probability of Profit: 73%
Expiry: .............. 45days

Strategy: Short call vertical



[u]Risk management: [/u]I'm closing the trade immediately - if the daily bar closing outside my strikes - and I'm cutting my loss. (no matter what I'm believing)- usually I'm losing mutch less than my max profit in this case. Danger zone starts at 20.28$

[u]Profit management:[/u] I'm sending an order at the 50% of max profit, immediately after my position opened - as usually.

2021년 3월 8일

노트

Exciting price action today.
Danger zone reached.

At this moment the potential loss if I would close the trade now: 62$ (max profit 80$)

Let's see tomorrow!

2021년 3월 11일

매매 수동청산

Big move upside today.
I'm not risknig any more move to the upside.
That was 102$ loss. (Original profit target was 80$).

Sold 0.80cr originally, bought back today for 0.182db